It depends on a number of factors, are you trying to find cash buyers for your land, what is your time frame to sell the land, and are you trying to get full market value for the property, and how much work do you want to do to sell it? Depending on your answer to those questions the method by which you decide to list and market the property is going to be different.
The land contract is its own legal agreement or contract, with all the terms and conditions agreed to between the buyer and seller. At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required. Attaching an amortization schedule to show the exact payoff schedule of applying the monthly payments to the total purchase price is helpful.
Limited pool of buyers: Most serious house-hunters are working with a real estate agent; the commission would normally get split between the buyer’s and seller’s agents. But without a commission on the table, no agent is going to bring clients to see your house. In fact, many shoppers are contractually obligated to purchase their home through their agent — meaning even someone who finds your house while out on a drive or surfing the Internet may not easily be able to buy it.
Land contracts are security agreements between a seller, known as a Vendor, and a buyer, known as a Vendee. The Vendor carries the financing for the Vendee, which may or may not contain an underlying loan. A main difference between a land contract and a mortgage is the buyer does not receive a deed or clear title to the property until the land contract is paid off.
My neighbor and I both want to do this as inexpensively as possible. I’m not expecting to make much more than what is needed to cover the mortgage payoff and a little extra to cover closing costs. I’m not sure what level of professional help needs to be involved, but the realtor who handled the deal for the home I just bought said it was as simple as contacting a title company to cover the necessary paperwork. Is that true?
I do most of my own title searches these days, but only because I know what I'm doing. If you have no idea where to start (even after watching the video above), there's nothing wrong with playing it safe and hiring a title company to handle this for you. Pay attention to what they're doing, ask a lot of questions along the way and learn how to do it yourself for future reference.
The one technique for how to sell a piece of land that is the same for home sales is using imagery to help buyers get a feel for the property and to help them get a sense of what they can do with it. For example, when you’re selling a home, you want to include plenty of photos with the listing and hold open houses so people can get a feel for the house. You want to clear out clutter and stage your home so buyers can visualize themselves living there, without being distracted by photos of your kids.
Hmm, I would think that most attorneys would want to control the recording process themselves rather than leaving it up to the buyer (because most buyers have no idea how to do this). Does the deed say that it was drafted by the buyer, or by the attorney? I’ve never heard of a rule where ONLY the buyer could record these things (maybe it works differently in Illinois, I’m not sure), but I know most recorders will only accept the original copies… so if you didn’t have the original copies (with “wet ink”), that could’ve been the issue too.
You can also look to certain companies and organizations that have a concentration of people that may fall in the above mentioned roles such as investment companies (i.e. Charles Schwab, Fidelity), financial advising companies (i.e. Morgan Stanley, Merrill Lynch). There may be a higher concentration of people who can both afford and want to build their own custom homes or to build income-producing properties. Try linking yourself to financial advisors who may already know of people who have these types of dreams. This isn't a comprehensive answer of all the possibilities but just some thoughts. Good luck!
×